Mumbai developer launches project in Varanasi

MUMBAI: One of the oldest real estate developers in Mumbai, S Raheja Realty has moved into Varanasi to develop 140 apartments totalling over two lakh sq ft.

Ram S. Raheja, Director, S Raheja Realty, said it was a joint development project and local response has been good , considering that it would be 14-storey complex and among the first high-rise buildings with basement parking in the city.

With over 3.5 lakh sq ft under development, Raheja feels that prospects today are brighter in tier 2 and tier 3 cities. The company is also looking to move into other cities such as Kolkata, Indore and Chennai. It has a presence in Pune.

REDEVELOPMENT

Asked about Mumbai real estate, Raheja said it was saturated. The company preferred redevelopment work as returns were assured without the burden of paying for the land. The pricing of apartments could also be pre-determined. Moreover, the free sale component with the builder in prime locations such as Bandra and Khar, where the Rahejas prefer to work, can be easily disposed of.

There are about 19,000 dilapidated properties in the city occupied by over 20 lakh families, which qualify for redevelopment. In the late Seventies, the Government levied a cess on the buildings for repair and maintenance as landlords were unwilling or could not meet the expenses with rentals frozen by the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947. Developers say there are many cases where the landlords could not be even traced.

Redevelopment is big business in Mumbai, where old societies seek re- construction of their homes free with the developer making good his margin and investment through a free sale component, which is the additional space he builds over and above the owners’ share.

Last year, the Rahejas launched a mid-income housing project in Palghar, a distant suburb, on a seven-acre plot. With over 90 per cent bookings, the company is looking to work on the second phase. This apart, the company has three redevelopment projects. The company is also working on a high-end luxury offering at Lonavala.

Latest Realty News

MUMBAI: High-end properties in South Mumbai have fewer takers in a gloomy economy. While property appreciation in Sobo, as the area is fondly called, has dropped to 10% from 30% two years ago, rental yields have fallen by more than half.

MUMBAI: A city apartment blocked by high-rises and smoke screen from the constant construction frenzy and congested streets, or a spacious suburban layout staring into a lush green cover with a slice of cosmopolitan urban lifestyle.

MUMBAI: Earlier this week, the Reserve Bank of India cautioned home buyers on innovative home loan schemes, popularly known as 80:20 or 75:25 schemes. The interest in these schemes had heightened in recent months, as builders and developers increasingly found it difficult to access funding. The central bank has clearly nipped the growing interest in the bud. This is because the scheme, in its current form, seems to give a raw deal to home buyers. Read on to understand how.

MUMBAI: Recently, the Reserve Bank of India reduced the permitted amount of annual remittances through the Liberalised Remittance Scheme (LRS) to $75,000 from $200,000 and also prohibited overseas property investments.

MUMBAI: Perhaps no other ambitious urban infrastructure project that has been touted as a game changer, has waited for more than 30 years, yet has had no takers, with a future that is delayed, if not denied. The Mumbai Trans Harbour Link (MTHL) project has been under consideration for the last 30 years to develop the island city the way Manhattan in the US has been developed, reduce traffic congestion and grow the area surrounding Navi Mumbai.

MUMBAI:Welcoming the new RBI governor Mr. Raghuram Rajan, developers’ apex body CREDAI Chairman and CMD Kumar Urban Development Ltd Lalit Kumar Jain appealed to him to adopt a consultative process with all stakeholders before making any major policy decisions relating to real estate